INVENTORY MANAGEMENT SYSTEMS
We offer customized inventory management solutions to help businesses optimize their stock levels, reduce carrying costs, and improve order fulfillment.
When most people think of inventory management, they think of retail applications. While retail operations rely heavily on inventory management, inventory management systems are widely used in a variety of industries, from manufacturing to utilities, healthcare, education, government, and more.
Inventory management systems streamline and centralize the process for controlling the flow and maintenance of inventory to ensure that the right amount of inventory is available at the right time and of the right quality.
Types of Inventory Management Systems
There are various types of inventory management systems available to businesses, and the type of system you use depends on the nature and needs of your business. Here are some of the different types of inventory management systems:
Periodic Inventory Management System
This type of system involves manual counting of inventory at specific intervals, such as weekly, monthly, or quarterly. This system is typically used by smaller businesses with a limited number of products.
Perpetual Inventory Management System
This type of system uses technology, such as barcode scanning or radio frequency identification (RFID), to track inventory levels in real-time. This system is best suited for larger businesses with a higher volume of products.
Just-in-Time (JIT) Inventory Management System
This system involves ordering and receiving inventory just in time to meet demand. It helps businesses to reduce inventory holding costs and improve cash flow, but requires careful coordination and planning.
Material Requirements Planning (MRP) Inventory Management System
This system uses software to plan and control inventory levels based on the production schedule. It helps businesses to ensure they have the necessary materials on hand to meet production needs.
Distribution Requirements Planning (DRP) Inventory Management System
This system uses software to manage inventory levels across multiple locations and distribution centers. It helps businesses to optimize inventory levels and reduce costs associated with carrying excess inventory.
Advanced Planning and Scheduling (APS) Inventory Management System
This system uses data analytics and machine learning to optimize inventory levels, production schedules, and distribution. It is typically used by larger businesses with complex supply chains.
Benefits of an Inventory Management System
Without an inventory management system, the goods and products that flow through an organization will inevitably be in disarray. An inventory management system enables a company to maintain a centralized record of every asset and item in the control of the organization, providing a single source of truth for the location of every item, vendor and supplier information, specifications, and the total number of a particular item currently in stock.
Because inventory often consists of movable assets, inventory management systems are critical for keeping tabs on current stock levels and understanding what items move quickly and which items are more slow-moving, which in turn enables organizations to determine when it’s time to reorder with greater accuracy. Overall, a comprehensive inventory management system offers countless benefits to companies including:
- Improved cash flow
- Better reporting and forecasting capabilities
- Reduction in storage costs (overhead)
- Reduced labor costs
- Reduction in dead stock
- Better organization
- Enhanced transparency
- Improved supplier, vendor, and partner relationships